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What Is an Explainer Video and Why Does It Matter for SaaS?

January 14, 2026 · Forgeclips

You built a SaaS product that solves a real problem, but getting potential customers to understand its value in the first 30 seconds is hard. You are selling an intangible system of features and workflows, not a physical product.

An explainer video is a short, focused video designed to bridge that gap. It is not a traditional ad. It is a strategic tool that answers one critical question for visitors: What problem does this solve, and how does it work?

Key takeaways

  • Explainer videos compress complexity into clarity in under 90 seconds.
  • They improve trust and conversions by showing the product in action.
  • Production paths are trade-offs: agency polish, freelancer flexibility, DIY speed.
  • Iteration matters for SaaS. Videos must be easy to update when UI changes.
  • Lean production enables a distribution-first strategy across channels.

Table of contents

  • Why this type of video matters
  • From confusion to conversion
  • Common approaches without judgment
  • Cost and time reality check
  • The challenge of iteration
  • How Forgeclips solves this
  • Distribution-first mindset
  • High-impact placement opportunities
  • Frequently asked questions
  • Next steps

Why this type of video matters

For a SaaS business, an explainer video directly impacts the metrics that matter most: clarity, trust, and conversion. When someone lands on your site, you have seconds to communicate your value. A strong video does this quickly, reduces bounce, and keeps people engaged.

This clarity attracts more qualified leads because prospects understand what your product does before they start a trial. By showing the solution in action, you build trust and lower the perceived risk of adopting a new tool. This is why 96% of people report watching an explainer video to learn about a product. You can dig deeper into these video marketing trends on SellersCommerce.com.

From confusion to conversion

An explainer video turns complexity into clarity. It translates abstract features into tangible outcomes. A visitor does not just see a dashboard. They see how that dashboard saves them an hour of manual reporting every day. That connection drives action.

Research often reports a meaningful lift in buying intent after watching an explainer video, and some sources cite conversion gains that can be very large depending on context. For example, one source references that 85% of people are more likely to buy after watching an explainer video, and that conversion rates can increase by as much as 80%. You can read more about explainer video stats on educationalvoice.co.uk.

This can translate into tangible business outcomes:

  • Lower customer acquisition cost (CAC): Better landing-page conversion makes ad spend more efficient.
  • Higher trial-to-paid conversion: Users who understand value early are more likely to upgrade.
  • Reduced sales cycle: A clear video helps B2B stakeholders align faster.

A great product marketing video is one of the highest-leverage investments a founder can make.


Common approaches (without judgment)

Once you decide to create an explainer video, you have a few production paths. Each comes with trade-offs in cost, time, and quality. The right choice depends on your stage, budget, and immediate goals.

Flowchart showing how explainer videos drive SaaS clarity and conversions.

The flowchart reinforces a simple truth: for a growing SaaS, an explainer video can be a direct line to attracting and converting users.

Agencies

Hiring a full-service creative agency is the premium option. You get high production quality, strategic guidance, and a team that manages everything from script to final delivery.

Agencies are a strong fit for established companies with dedicated budgets. The trade-off is high cost and long timelines that can stretch for months.

Freelancers

Freelancers offer flexibility and can deliver excellent custom results for less than an agency. You also get more direct control.

The main challenge is management overhead. The founder often becomes the project manager: sourcing talent, aligning the creative direction, and keeping everything consistent. It helps to understand how to make a script to reduce iteration.

DIY and template tools

DIY template tools are typically the fastest and most affordable route. You can produce something quickly for a low monthly fee.

The risk is a generic result. Templates may not communicate a unique SaaS value proposition, which can reduce impact even if the video looks decent.


Cost and time reality check

A professional explainer video from an agency often starts around a few thousand dollars and can exceed $50,000 depending on complexity. That includes strategy, scripting, animation, and project management, with timelines measured in months.

The real cost, however, is opportunity cost. Every hour you spend managing production is an hour not spent on product, customers, or fundraising.

The challenge of iteration

Traditional production can lock you into a rigid asset. When your UI changes or your messaging evolves, even small edits can be slow and expensive.

SaaS is always evolving. You need freedom to test and refine your story without waiting weeks for updates. You can explore the traditional process of animation to understand why iteration can become painful.


How Forgeclips solves this

For founders who need professional quality without traditional overhead, a practical alternative exists. The goal is a smarter approach that respects both budget and time, reaching roughly 90 to 95% of a custom project result for a fraction of the cost.

This approach avoids the blank-canvas problem by starting with proven frameworks built for SaaS communication. A solution like Forgeclips sits in that middle ground, delivering studio-quality explainer videos in days by combining smart scripting assistance with professional human polish.


Distribution-first mindset

An excellent explainer video is useless if no one sees it. The real benefit of a lean production process is that it frees up time and budget for what drives growth: distribution.

When you are not spending your entire marketing budget on a single video, you can run ads, test multiple cuts, and reach a wider audience. This shift from production-first to distribution-first thinking is a major advantage for a growing SaaS.

Distribution diagram showing how to repurpose an explainer video across channels.

High-impact placement opportunities

Saving resources on production lets you focus on placing the video where it will matter most:

  • Website hero video: Clarifies value immediately for new visitors.
  • Social ads: Short versions can drive qualified traffic from LinkedIn or YouTube.
  • Product pages: Demonstrate specific features in context.
  • Onboarding emails: Reinforce value and guide users to their first win faster.

Frequently asked questions

How long should an explainer video be?

For most SaaS products, aim for 60 to 90 seconds. This gives enough time to define the problem, introduce the solution, and show the key benefits without losing attention. For social ads, aim for 15 to 30 seconds.

What makes a SaaS explainer video effective?

Clarity over cleverness. It should define the user problem, position your product as the direct solution, and show the UI in action. A strong call to action is essential.

Should I use animation or live action?

For many SaaS products, animation is often the better choice. It helps explain abstract workflows and makes UI presentation clean and controlled. It is also typically easier to update as your product evolves.

Where should I place my explainer video?

The highest-impact placement is above the fold on your homepage. Other strong locations include landing pages, product tour pages, pricing pages, and onboarding email sequences.


Next steps

An explainer video is an essential tool for SaaS founders who want to communicate value clearly and drive growth. It simplifies your message, builds trust, and turns visitors into customers.

If you need a professional video that respects your time and budget, explore our process. Forgeclips helps founders get studio-quality videos in days, not months. See how it works at Forgeclips.

Want a SaaS explainer video that lands the value fast?

Explore Forgeclips frameworks and ship a polished video quickly.

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